15MBA4101: LOGISTICS AND SUPPLY CHAIN MANAGEMENT

MCQS QUESTION BANK

1. WHICH OF THE FOLLOWING IS TRUE FOR SUPPLY CHAIN MANAGEMENT.

A. THE PHYSICAL MATERIAL MOVES IN THE DIRECTION OF THE END OF
CHAIN
B. FLOW OF CASH BACKWARDS THROUGH THE CHAIN
C. EXCHANGE OF INFORMATION MOVES IN BOTH THE DIRECTION
D. ALL OF THE ABOVE
(ANSWER:D)

2. THE SEQUENCE OF A TYPICAL MANUFACTURING SUPPLY CHAIN IS

A. STORAGE–SUPPLIER–MANUFACTURING–STORAGE–DISTRIBUTOR–
RETAILER–CUSTOMER
B. SUPPLIER–STORAGE-MANUFACTURING–STORAGE–DISTRIBUTOR–
RETAILER–CUSTOMER
C. SUPPLIER–STORAGE-MANUFACTURING– DISTRIBUTOR–STORAGE–
RETAILER–CUSTOMER
D. SUPPLIER–STORAGE-MANUFACTURING–STORAGE– RETAILER–
DISTRIBUTOR–CUSTOMER
ANSWER: B

3. THE PURPOSE OF SUPPLY CHAIN MANAGEMENT IS

A. PROVIDE CUSTOMER SATISFACTION
B. IMPROVE QUALITY OF A PRODUCT
C. INTEGRATING SUPPLY AND DEMAND MANAGEMENT
D. INCREASE PRODUCTION
(ANSWER:C)

4. LOGISTICS IS THE PART OF A SUPPLY CHAIN INVOLVED WITH THE

FORWARD AND REVERSE FLOW OF
A. GOODS
B. SERVICES
 C. CASH
D. ALL OF THE ABOVE
(ANSWER:D)

5. DUE TO SMALL CHANGE IN CUSTOMER DEMANDS, INVENTORY

OSCILLATIONS BECOME PROGRESSIVELY LARGER LOOKING THROUGH THE
SUPPLY CHAIN. THIS IS KNOWN AS
A. BULLWHIP EFFECT
B. NETCHAIN ANALYSIS
C. REVERSE LOGISTICS
D. REVERSE SUPPLY CHAIN
(ANSWER:A)

6. VMI STANDS FOR

A. VENDOR MATERIAL INVENTORY
B. VENDOR MANAGED INVENTORY
C. VARIABLE MATERIAL INVENTORY
D. VALUABLE MATERIAL INVENTORY
(ANSWER:B)

7. THE MAJOR DECISION AREAS IN SUPPLY CHAIN MANAGEMENT ARE

A. LOCATION, PRODUCTION, DISTRIBUTION, INVENTORY
B. PLANNING, PRODUCTION, DISTRIBUTION, INVENTORY
C. LOCATION, PRODUCTION, SCHEDULING, INVENTORY
D. LOCATION, PRODUCTION, DISTRIBUTION, MARKETING
(ANSWER:A)

8. DISTRIBUTION REQUIREMENT PLANNING IS A SYSTEM FOR

A. INVENTORY MANAGEMENT
B. DISTRIBUTION PLANNING
C. BOTH ‘A’ AND ‘B’
D. NONE OF THE ABOVE
(ANSWER:C)

9. REVERSE LOGISTICS IS REQUIRED BECAUSE

A. GOODS ARE DEFECTIVE
B. GOODS ARE UNSOLD
C. THE CUSTOMERS SIMPLY CHANGE THEIR MINDS
D. ALL OF THE ABOVE
(ANSWER:D)

10. 3-PL STANDS FOR

A. THREE POINTS LOGISTICS
B. THIRD PARTY LOGISTICS
C. THREE POINTS LOCATION
D. NONE OF THE ABOVE
(ANSWER:B)

11. ……………….INCLUDES DESIGN AND ADMINISTRATION OF SYSTEMS TO

CONTROL THE FLOW OF MATERIALS, WIP AND FINISHED INVENTORY TO
SUPPORT BUSINESS UNIT STRATEGY.
A. LOGISTICS MANAGEMENT
B. MATERIALS MANAGEMENT
C. BILL OF MATERIALS
D. NONE OF THE ABOVE

ANSWER: LOGISTICS MANAGEMENT

12. WHICH IS NOT A PART OF BASIC SYSTEMS OF CODIFICATIONS.

A. ALPHABETICAL SYSTEM
B. NUMERICAL SYSTEM
C. COLOUR CODING SYSTEM
D. NONE OF THE ABOVE
ANSWER: D
13. ……………AND PHYSICAL DISTRIBUTION ARE THE TWO MAJOR
OPERATIONS OF LOGISTICS.
A. SUPPLY CHAIN MANAGEMENT
B. MATERIALS MANAGEMENT
C. LOGISTICS MANAGEMENT
D. NONE OF THE ABOVE
ANSWER: B

14. …………IS THE TIME THAT ELAPSES BETWEEN ISSUING REPLENISHMENT

ORDER AND RECEIVING THE MATERIAL IN STORES.
A. REPLENISHMENT TIME
B. LEAD TIME
C. IDLE TIME
D. NONE OF THE ABOVE
ANSWER: B

15. ……………IS THE TASK OF BUYING GOODS OF RIGHT QUALITY, IN THE

RIGHT QUANTITIES, AT THE RIGHT TIME AND AT THE RIGHT PRICE.
A. SUPPLYING
B. PURCHASING
C. SCRUTINIZING
D. NONE OF THE ABOVE
ANSWER: B

16. WHICH OF THE FOLLOWING IS NOT A COMPONENT OF 4PL.

A. CONTROL ROOM (INTELLIGENCE)
B. RESOURCE PROVIDERS
C. INFORMATION
D. RECYCLING
ANSWER: D
17. WHICH OF THE FOLLOWING IS NOT A PART OF SUPPLY CHAIN
MANAGEMENT SYSTEM.

A. SUPPLIER

B. MANUFACTURER

C. INFORMATION FLOW

D. COMPETITOR

E. CUSTOMER

ANSWER: D

18. ……………………..IS THE PROVISION OF SERVICE TO CUSTOMERS BEFORE,

DURING AND AFTER A PURCHASE.

A. CUSTOMER SERVICE

B. PRODUCT MANAGEMENT

C. PURCHASE MANAGEMENT

D. NONE OF THE ABOVE

ANSWER: A

19. BUYING ACCORDING TO THE REQUIREMENTS IS CALLED …………

A. SEASONAL BUYING

B. HAND TO MOUTH BUYING

C. SCHEDULED BUYING

D. TENDER BUYING

E. SPECULATIVE BUYING

ANSWER: B

20. WHICH OF THE FOLLOWING IS THE OPPOSITE OF JUST IN TIME.

A. STOCK CONTROL 5

B. TQM 5

C. JUST IN CASE STOCK MANAGEMENT 5

D. KAIZEN 5
ANSWER C

21. A DRAWBACK TO A BUSINESS OF USING JUST IN TIME STOCK CONTROL IS:

A. HIGH INSURANCE COSTS

B. STOCK COULD QUICKLY BECOME OUT OF DATE OR OBSOLETE

C. STORAGE COSTS WILL BE HIGH

D. DELAYS IN DELIVERIES COULD RESULT IN IDLE RESOURCES

ANSWER D

22. WHICH OF THE FOLLOWING BUSINESSES WOULD BE BEST SUITED TO A

JUST IN TIME STOCK CONTROL SYSTEM.

A. CAR MANUFACTURER

B. NATIONWIDE FOOTWEAR RETAILER

C. WHOLESALER OF BUILDING SUPPLIES

D. SCHOOL UNIFORM RETAILER

ANSWER A

23. WHICH OF THE FOLLOWING WOULD A NEW FAIR TRADE CAFÉ CONSIDER
AS THE MOST IMPORTANT FACTOR

WHEN CONSIDERING ITS CHOICE OF SUPPLIERS.

A. PRICE

B. RELIABILITY

C. FLEXIBILITY

D. ETHICAL VALUES

ANSWER D

24. THE BUSINESS TERM THAT INVOLVES CHOOSING A SUPPLIER, AGREEING

WHAT TO BUY AT A CERTAIN PRICE AND BY WHEN IS CALLED:

A. LOGISTICS

B. SUPPLY CHAIN MANAGEMENT

C. STOCK CONTROL
D. PROCUREMENT

ANSWER D

25. WHICH OF THE FOLLOWING IS A BENEFIT TO A SUPPLIER OF

CONSISTENTLY DELIVERING PRODUCTS ON TIME.

A. REPEAT ORDERS

B. LOWER PRICES

C. LOWER STORAGE COSTS

D. MINIMAL BUFFER STOCK HELD

ANSWER A

26. SUPPLY CHAIN MANAGEMENT IS INCREASINGLY DIFFICULT AND

COMPLEX DUE TO:

A. THE INCREASED PACE OF GLOBALISATION

B. THE UK’S AGEING POPULATION

C. ECONOMIES OF SCALE

D. IMPROVEMENTS IN COMMUNICATION SYSTEMS

ANSWER A

27. WHICH OF THE FOLLOWING JOB ROLES WOULD BE FOUND WITHIN THE
LOGISTICS DEPARTMENT FOR A LARGE SUPERMARKET CHAIN.

A. CUSTOMER SERVICES MANAGER

B. WAREHOUSE MANAGER

C. RETAIL MANAGER

D. HUMAN RESOURCES MANAGER

ANSWER B

28. WHICH AREA OF BUSINESS WILL AMAZON PARTICULARLY FOCUS UPON

TO ENSURE CUSTOMER DELIVERIES ARRIVE ON TIME.

A. FINANCE
B. SALES

C. LOGISTICS

D. MARKETING

ANSWER C

29. THE TIME DIFFERENCE BETWEEN A BUSINESS ORDERING AND RECEIVING

STOCK IS CALLED THE:

A. REORDER QUANTITY

B. LEAD TIME

C. BUFFER STOCK

D. REORDER LEVEL

ANSWER B

30. WHICH OF THE FOLLOWING IS A MAIN REASON WHY A SUPPLIER MAY BE

RELUCTANT TO SUPPLY A NEW

BUSINESS WITH STOCK.

A. THE QUALITY OF THE SUPPLIES MAY NOT MEET CUSTOMER EXPECTATIONS

B. THE NEW BUSINESS MAY REQUEST LARGE VOLUMES OF STOCK

C. THE NEW BUSINESS MAY DEMAND REASONABLE PRICES

D. HIGH FAILURE RATE OF NEW BUSINESSES

ANSWER D

31. WHICH OF THE FOLLOWING IS A BENEFIT TO A BUSINESS OF HAVING AN

EFFICIENT PROCUREMENT

DEPARTMENT.

A. IMPROVED LEVELS OF CUSTOMER SERVICE

B. INCREASED LEVELS OF STAFF MOTIVATION

C. HIGHER SALES REVENUE

D. LOWER UNIT COSTS

ANSWER D
32. WHICH OF THE FOLLOWING IS THE FIRST STAGE IN A SUPPLY CHAIN FOR A
CHOCOLATE BAR.

A. THE SUPPLIER OF COCOA BEANS

B. THE MANUFACTURER OF THE CHOCOLATE BAR

C. TRANSPORTATION BETWEEN EACH STAGE OF THE SUPPLY CHAIN

D. THE RETAILER

ANSWER A

33. WHICH OF THE FOLLOWING IS A BENEFIT TO A BUSINESS OF REDUCING ITS

PRODUCTION TIMES.

A. IT WILL HOLD LESS STOCK

B. IT SALES WILL INCREASE

C. ITS STAFF WILL BE MORE MOTIVATED

D. IT COULD CREATE A COMPETITIVE ADVANTAGE5

ANSWER D

34. A BUSINESS GETTING GOOD VALUE WHEN BUYING PRODUCTS MEANS

THAT IT WILL:

A. ALWAYS GET THE CHEAPEST PRICE

B. ALWAYS GET THE HIGHEST QUALITY

C. GET THE RIGHT BALANCE BETWEEN PRICE AND QUALITY

D. CHARGE ITS CUSTOMERS THE LOWEST PRICE POSSIBLE

ANSWER C

35. WHICH OF THE FOLLOWING STATEMENTS IS TRUE.

A. LOGISTICS AND SUPPLY CHAIN ARE SAME.

B. TRANSPORTATION AND LOGISTICS ARE SAME

C. LOGISTICS IS A SUBSET OF SUPPLY CHAIN

D. PHYSICAL DISTRIBUTION AND LOGISTICS ARE THE SAME

E. SUPPLY CHAIN IS A SUBSET OF LOGISTICS

ANSWER: C

36. IF A CUSTOMER VISITING A DEPARTMENTAL STORE CANNOT FIND HIS

DESIRED SOAP MANUFACTURED BY HINDUSTAN UNILEVER LTD (HUL) IN THE
STORE, WHICH OF THE FOLLOWING CHAIN PARTNER WILL HE HOLD
RESPONSIBLE FOR THE NON-AVAILABILITY OF THE SOAP.

A. THE LOGISTICS SERVICE PROVIDER

B. HINDUSTAN UNILEVER LTD

C. THE DEPARTMENTAL STORE

D. THE DISTRIBUTOR

E. THE SUPPLIERS OF RAW MATERIALS AND COMPONENTS

ANSWER C

37. WHICH OF THE FOLLOWING SEQUENCE IS TRUE.

A. SOURCING → INBOUND LOGISTICS → CONVERSION INTO FINISHED GOODS

→ OUTBOUND LOGISTICS → RETAILING

B. SOURCING → CONVERSION INTO FINISHED GOODS → INBOUND LOGISTICS

→ OUTBOUND LOGISTICS → RETAILING

C. SOURCING → OUTBOUND LOGISTICS → CONVERSION INTO FINISHED

GOODS → INBOUND LOGISTICS → RETAILING

D. INBOUND LOGISTICS → SOURCING → CONVERSION INTO FINISHED GOODS

→ OUTBOUND LOGISTICS → RETAILING

E. SOURCING → INBOUND LOGISTICS → OUTBOUND LOGISTICS →

CONVERSION INTO FINISHED GOODS → RETAILING

ANSWER A

38. SUPPLY CHAIN IS CONCERNED WITH THE

A. FLOW OF RAW MATERIALS, WIP AND FINISHED PRODUCTS IN THE

FORWARD DIRECTION

B. FLOW OF INFORMATION IN BOTH THE DIRECTIONS

C. FLOW OF CASH IN THE REVERSE DIRECTION

D. FLOW OF MATERIALS IN THE FORWARD DIRECTION AND THAT OF CASH IN
THE REVERSE DIRECTION

E. FLOW OF MATERIALS IN THE FORWARD DIRECTION, CASH IN THE REVERSE

DIRECTION AND INFORMATION IN BOTH THE DIRECTIONS

ANSWER E

39. THE OBJECTIVE OF A SUPPLY CHAIN IS:

A. TO IMPROVE THE EFFICIENCY ACROSS THE WHOLE SUPPLY CHAIN

B. TO IMPROVE RESPONSIVENESS ACROSS THE WHOLE SUPPLY CHAIN

C. TO DELIVER IMPROVED VALUE TO THE CUSTOMERS

D. TO IMPROVE THE EFFICIENCY AND RESPONSIVENESS ACROSS THE WHOLE

SUPPLY CHAIN AND ALSO DELIVER IMPROVED VALUE TO THE CUSTOMERS

E. TO IMPROVE THE RESPONSIVENESS ACROSS THE WHOLE SUPPLY CHAIN

AND DELIVER IMPROVED VALUE TO THE CUSTOMERS

ANSWER D

40. WHICH OF THE FOLLOWING STATEMENTS IS TRUE.

A. FORD SUPPLY CHAIN IS BOTH HIGHLY EFFICIENT AS WELL AS HIGHLY

RESPONSIVE

B. DELL SUPPLY CHAIN IS BOTH HIGHLY EFFICIENT AS WELL AS HIGHLY

RESPONSIVE

C. TOYOTA SUPPLY CHAIN BELIEVED IN MEDIUM-TERM RELATIONSHIP WITH

THE SUPPLIERS WITH LOOSELY HELD SUPPLIER NETWORK

D. DELL SUPPLY CHAIN BELIEVED IN MEDIUM-TERM RELATIONSHIP WITH

THE SUPPLIERS WITH LOOSELY HELD SUPPLIER NETWORK

E. DELL SUPPLY CHAIN PROPAGATED THE CONCEPT OF LONG-TERM

RELATIONSHIP WITH THE SUPPLIERS.

ANSWER D

41. IN TODAY’S SUPPLY CHAIN, THERE HAS BEEN A SHIFT IN THE POWER
STRUCTURE IN A CHAIN TOWARDS

A. MANUFACTURERS

B. RAW-MATERIAL SUPPLIERS
C. THIRD-PARTY LOGISTICS SERVICE PROVIDERS

D. RETAILERS

E. DISTRIBUTORS

ANSWER D

42. WHICH OF THE FOLLOWING STATEMENTS IS TRUE REGARDING

OUTSOURCING.

A. HIGHER LEVEL OF OUTSOURCING ENABLES A FIRM TO HAVE BETTER

CONTROL ON ALL OUTSOURCED ACTIVITIES

B. HIGHER LEVEL OF OUTSOURCING MAKES A FIRM MORE VULNERABLE TO

OUTSIDE INFLUENCES

C. HIGHER LEVEL OF OUTSOURCING ENABLES A FIRM TO OUTSOURCE CORE

ACTIVITIES TO OTHER COMPETENT PLAYERS

D. HIGHER LEVEL OF OUTSOURCING ENABLES A FIRM TO OUTSOURCE NON-

CORE ACTIVITIES TO OTHER COMPETENT PLAYERS, HOWEVER, IT MAKES THE
FIRM MORE VULNERABLE TO OUTSIDE INFLUENCES

E. HIGHER LEVEL OF OUTSOURCING ENABLES A FIRM TO OUTSOURCE NON-

CORE ACTIVITIES TO OTHER COMPETENT PLAYERS AND ALSO ENABLES THE
FIRM TO HAVE BETTER CONTROL ON ALL OUTSOURCED ACTIVITIES

ANSWER E

43. IF THE FOCUS OF A RETAILER IS TO ACHIEVE LEADERSHIP IN COST, THEN

WHICH OF THE FOLLOWING PHENOMENON WILL HOLD GOOD.

A. CUSTOMERS WILL PREFER A LARGE VARIETY OF PRODUCTS AND THE

RETAILER WILL ALSO KEEP A LARGE VARIETY IN THE STORE IN ORDER TO
SATISFY CUSTOMER NEEDS

B. CUSTOMERS WILL LIKE TO HAVE CONVENIENCE AND THE RETAILERS WILL

ALSO SET UP A NUMBER OF STORES AT DIFFERENT LOCATIONS IN ORDER TO
PROVIDE CONVENIENCE TO THE CUSTOMERS

C. CUSTOMERS WILL PREFER A LARGE VARIETY OF PRODUCTS BUT THE

RETAILER WILL NOT KEEP A LARGE VARIETY IN THE STORE IN ORDER TO
ACHIEVE ECONOMIES OF SCALE

D. CUSTOMERS WILL PREFER SHORT LEAD TIME FOR THEIR PRODUCTS AND
THE RETAILER WILL KEEP HIGHER AMOUNT OF INVENTORY IN ORDER TO
SATISFY CUSTOMER NEEDS IN TIME
E. CUSTOMERS WILL PREFER A LARGE VARIETY OF PRODUCTS AND THE
RETAILER WILL KEEP HIGHER VARIETY AS ALSO HIGHER AMOUNT OF
INVENTORY IN ORDER TO SATISFY CUSTOMER NEEDS

ANSWER C

44. THE COMPANIES WILL REALIZE THE BENEFITS OF IMPLEMENTING IT WHEN

WHICH OF THE FOLLOWING IS UNDERTAKEN.

A. COMPANIES NEED TO INVEST HEAVILY IN INFORMATION SYSTEMS

B. COMPANIES NEED TO AUTOMATE THE EXISTING SUPPLY CHAIN SYSTEMS

AND PROCESSES

C. COMPANIES NEED TO RE-ENGINEER THEIR SUPPLY CHAIN STRUCTURE

COMPANIES NEED TO RE-ENGINEER THEIR SUPPLY CHAIN STRUCTURE

D. COMPANIES NEED TO UNDERTAKE REVISION IN THE SUPPORTING

ORGANIZATIONAL PROCESSES

E. COMPANIES NEED TO RE-ENGINEER THEIR SUPPLY CHAIN STRUCTURE AND

UNDERTAKE REVISION IN THE SUPPORTING ORGANIZATIONAL PROCESSES

ANSWER E

45. FORD SUPPLY CHAIN IS CHARACTERIZED BY

A. VERTICAL INTEGRATION

B. INDIVIDUAL CUSTOMIZATION

C. LOOSELY-HELD SUPPLIER NETWORKS

D. INCREASED PRODUCT VARIETY

E. LONG-TERM RELATIONSHIP WITH THE SUPPLIERS

ANSWER A

46. TOYOTA SUPPLY CHAIN IS CHARACTERIZED BY

A. INDIVIDUAL CUSTOMIZATION

B. LOOSELY-HELD SUPPLIER NETWORKS

C. VERTICAL INTEGRATION

D. ZERO PRODUCT VARIETY

E. LONG-TERM RELATIONSHIP WITH THE SUPPLIERS

ANSWER E

47. DELL SUPPLY CHAIN IS CHARACTERIZED BY

A. INDIVIDUAL CUSTOMIZATION

B. ZERO PRODUCT VARIETY

C. LONG-TERM RELATIONSHIP WITH THE SUPPLIERS

D. VERTICAL INTEGRATION

E. LEAN PRODUCTION SYSTEMS

ANSWER A

48. WHICH OF THE FOLLOWING STATEMENTS IS TRUE.

A. A 3PL COMPANY IS A PROFESSIONAL LOGISTICS SERVICE PROVIDER

MEETING THE LOGISTICS REQUIREMENTS OF AN ORGANIZATION AND CAN
ALSO INTEGRATE ITS RESOURCES, CAPABILITY, AND TECHNOLOGY IN ORDER
TO PROVIDE COMPREHENSIVE SOLUTION TO ITS CUSTOMERS.

B. A 4PL COMPANY IS A PROFESSIONAL LOGISTICS SERVICE PROVIDER

MEETING THE LOGISTICS REQUIREMENTS OF AN ORGANIZATION AND CAN
ALSO INTEGRATE ITS RESOURCES, CAPABILITY, AND TECHNOLOGY IN ORDER
TO PROVIDE COMPREHENSIVE SOLUTION TO ITS CUSTOMERS.

C. A 4PL COMPANY IS A PROFESSIONAL LOGISTICS SERVICE PROVIDER

MEETING ONLY THE LOGISTICS REQUIREMENTS OF AN ORGANIZATION.

D. A 3PL COMPANY IS A PROFESSIONAL LOGISTICS SERVICE PROVIDER

MEETING ONLY THE LOGISTICS REQUIREMENTS OF AN ORGANIZATION.

E. A 3PL IS A LOGISTICS SERVICE PROVIDER MEETING ONLY THE LOGISTICS

REQUIREMENTS OF AN ORGANIZATION WHILE 4PL IS A LOGISTICS SERVICE
PROVIDER MEETING THE LOGISTICS REQUIREMENTS OF AN ORGANIZATION
AND CAN ALSO INTEGRATE ITS RESOURCES, CAPABILITY AND TECHNOLOGY
TO PROVIDE COMPREHENSIVE SOLUTION TO ITS CUSTOMERS

ANSWER E

49. WHICH ONE OF THE FOLLOWING IS NOT THE SUPPLY CHALLENGE BEING
FACED BY THE INDIAN ORGANIZATIONS.
A. POOR INFRASTRUCTURE

B. COMPLEX DISTRIBUTION STRUCTURE

C. COMPLEX TAXATION STRUCTURE

D. SMALLER PACK SIZES

E. IT IMPLEMENTATION
ANSWER E

50. THE MOST VALUABLE SOURCES OF DATA FOR MERCHANDISING

DECISIONS ARE

A. SUPPLIERS

B. RETAIL PERSONNEL

C. CONSUMERS

D. COMPETITORS

ANSWER C

51. A RETAILER CAN DETERMINE CONSUMER REQUESTS FOR UNSTOCKED OR

OUT-OF-STOCK MERCHANDISE THROUGH THE USE OF A(N):

A. BASIC STOCK LIST

B. NEVER-OUT LIST

C. ELECTRONIC DATA INTERCHANGE SYSTEM

D. WANT BOOK

ANSWER D

52. WHICH OF THESE IS NOT A POTENTIAL SOURCE OF MERCHANDISE.

A. COMPANY-OWNED SUPPLIER

B. COMPETING RETAILER

C. OUTSIDE, REGULARLY USED SUPPLIER

D. OUTSIDE, NEW SUPPLIER

ANSWER B
53. WHICH OF THE FOLLOWING FORMS OF EVALUATING MERCHANDISE IS
MOST APPROPRIATE FOR A FINE JEWELLERY RETAILER.

A. SAMPLING

B. INSPECTION

C. DESCRIPTION

D. FINAL SELECTION

ANSWER B

54. WHICH OF THE FOLLOWING FORMS OF EVALUATING MERCHANDISE IS

MOST APPROPRIATE FOR STANDARDIZED, NON-BREAKABLE, AND NON-
PERISHABLE MERCHANDISE.

A. SAMPLING

B. INSPECTION

C. DESCRIPTION

D. FINAL SELECTION

ANSWER C

55. OFF-PRICE RETAILERS AND OTHER DEEP DISCOUNTERS GENERALLY

EMPLOY WHICH FORM OF BUYING.

A. OPPORTUNISTIC BUYING

B. DECENTRALIZED BUYING

C. RESIDENT BUYING HOUSE BUYING

D. LONG-TERM BUYING CONTRACT

ANSWER A

56. PAYMENTS REQUIRED BY RETAILERS FOR PROVIDING SHELF SPACE IN

STORES ARE

A. SHELF FACING FEES

B. SLOTTING ALLOWANCES

C. MULTIPLE SHELF FACE ALLOWANCES

D. SHELF SPACE ALLOWANCES

ANSWER B

57. INVENTORY RISK TO A RETAILER IS LOWEST IN A

A. SHORT-TERM SUPPLY CONTRACT

B. LONG-TERM SUPPLY CONTRACT

C. CONSIGNMENT PURCHASE

D. NEGOTIATED PURCHASE

ANSWER C

58. WHICH OF THE FOLLOWING CAN RESULT BY MAINTAINING A LARGE

INVENTORY.

A. QUANTITY DISCOUNTS OBTAINED ON LARGER ORDERS

B. LOW INVESTMENT COSTS

C. HIGH TRANSPORTATION CHARGE

D. DIFFICULTY WITH CONTROL AND HANDLING

ANSWER A

59. WHICH OF THE FOLLOWING IS NOT A POTENTIAL ADVANTAGE OF

MAINTAINING A SMALL INVENTORY.

A. LOW INVESTMENT COSTS

B. LOW IMPACT OF ORDER DELAY ON SALES

C. LOW STORAGE COSTS

D. LOW OBSOLESCENCE

ANSWER B

60. WHICH OF THESE IS NOT A LOGISTICS PROCESS.

A. ORDER PROCESSING

B. INVENTORY MANAGEMENT

C. CUSTOMER SERVICE
D. STORE OPERATIONS

ANSWER D

61. THE LOGISTICS ASPECT OF A VALUE DELIVERY CHAIN IS:

A. A SUPPLY CHAIN

B. DIRECT STORE DELIVERY

C. VALUE ORIENTATION

D. INVENTORY PLANNING

ANSWER A

62. SMALL ORDERS AND FREQUENT ORDERING ARE CHARACTERISTICS OF:

A. ECONOMIC ORDER QUANTITY (EOQ)

B. INVENTORY MANAGEMENT

C. LOGISTICS

D. QUICK RESPONSE (QR) INVENTORY PLANNING

ANSWER D

63. FLOOR-READY MERCHANDISE AND ELECTRONIC DATA INTERCHANGE

(EDI) ARE BOTH ASPECTS OF:

A. CROSS-DOCKING

B. PREFERRED LOGISTICS

C. QUICK RESPONSE (QR) INVENTORY PLANNING

D. ECONOMIC ORDER QUANTITY PLANNING

ANSWER C

64. COLLABORATIVE RELATIONSHIPS BETWEEN CHANNEL MEMBERS TO SEEK

OUT INEFFICIENCIES IN THE ORDERING/RECEIVING PROCESS ARE AN
IMPORTANT PART OF:

A. EFFICIENT CONSUMER RESPONSE (ECR)

B. PREFERRED LOGISTICS

C. ECONOMIC ORDER QUANTITY PLANNING

D. STOCKOUT LOSS PLANNING

ANSWER A

65. DIRECT STORE DISTRIBUTION (DSD) IS MOST APPROPRIATE FOR:

A. SMALL PRODUCTS

B. PERISHABLE PRODUCTS

C. IMPORTED PRODUCTS

D. PRODUCTS SUBJECT TO HIGH TARIFFS

ANSWER B

66. ANTI-THEFT TAGS ARE PLACED ON PRODUCTS WHEN THEY ARE

PRODUCED WITH:

A. VENDOR-MANAGED INVENTORY (VMI)

B. FLOOR-READY MERCHANDISE

C. SOURCE TAGGING

D. REVERSE LOGISTICS

ANSWER C

67. THE GREATEST SOURCE OF INVENTORY SHRINKAGE IS CAUSED BY:

A. FRAUD BY CUSTOMERS

B. CUSTOMER SHOPLIFTING

C. EMPLOYEE THEFT

D. VENDOR FRAUD

ANSWER C

68. ELECTRONIC ARTICLE SURVEILLANCE IS AN ASPECT OF:

A. MERCHANDISE SECURITY

B. VENDOR-MANAGED INVENTORY (VMI)

C. SOURCE TAGGING
D. REVERSE LOGISTICS

ANSWER A

69. WHICH OF THE FOLLOWING IS AN EXAMPLE OF REVERSE LOGISTICS.

A. DIRECT STORE DELIVERY

B. VENDOR-MANAGED INVENTORY (VMI)

C. SOURCE TAGGING

D. HANDLING OF RETURNS

ANSWER D

70. SUPPLY CHAIN MANAGEMENT IS ESSENTIALLY THE OPTIMISATION OF

MATERIAL FLOWS AND ASSOCIATED INFORMATION FLOWS INVOLVED WITH
AN ORGANISATION'S OPERATIONS. TO MANAGE THESE FLOWS, E-BUSINESS
APPLICATIONS ARE ESSENTIAL TO BRING SUCH BENEFITS AS NOTED IN
'INTERNET RETAILING' IN 2010 WHICH REPORTED THAT THE AVERAGE RATES
OF RETURN TO A HIGH STREET RETAILER COULD BE AS HIGH AS 10%. WHAT
DID THE SAME SOURCE REPORT AS THE AVERAGE RATE OF RETURN FOR UK
E-COMMERCE SITES.

A. 15%

B. 18%

C. 12%

D. 22%

ANSWER D

71. SUPPLY CHAIN (SC) MANAGEMENT INVOLVES THE COORDINATION OF ALL

SUPPLY ACTIVITIES OF AN ORGANISATION FROM ITS SUPPLIERS TO THE
DELIVERY OF PRODUCTS TO ITS CUSTOMERS. THERE ARE VARIOUS FEATURES
ASSOCIATED WITH THIS AREA OF E-COMMERCE AND WHICH REFERS TO
WHAT IS KNOWN AS EFFICIENT CONSUMER RESPONSE (ECR):

A. CREATING AND SATISFYING CUSTOMER DEMAND BY OPTIMIZING

STRATEGIES, PROMOTIONS AND PRODUCT INTRODUCTIONS

B. TRANSACTIONS BETWEEN AN ORGANISATION AND ITS CUSTOMERS AND

INTERMEDIARIES

C. THE LINKS BETWEEN AN ORGANISATION AND ALL PARTNERS INVOLVED

D. NONE OF THE ABOVE

ANSWER A

72. AN ORGANISATION'S SUPPLY CHAIN CAN BE VIEWED FROM A SYSTEM'S

PERSPECTIVE THAT STARTS WITH THE ACQUISITION OF RESOURCES WHICH
ARE THEN TRANSFORMED INTO PRODUCTS OR SERVICES. SIMPLY, PUT THE
SEQUENCE IS REPRESENTED:

A. INPUTS - PROCESS – OUTPUTS

B. PROCESS - INPUTS - OUTPUTS

C. INPUTS - OUTPUTS - PROCESS

D. SOURCING - INPUT - PROCESS - OUTPUTS

ANSWER A

73. LOGISTICS IS AN INTEGRAL PART OF SUPPLY CHAIN MANAGEMENT.

WHICH EXPLANATION BEST REPRESENTS OUTBOUND LOGISTICS.

A. THE MANAGEMENT OF MATERIAL RESOURCES ENTERING AN

ORGANISATION FROM ITS SUPPLIERS AND OTHER PARTNERS

B. THE MANAGEMENT OF RESOURCES SUPPLIED FROM AN ORGANISATION TO

ITS CUSTOMERS AND INTERMEDIARIES

C. AN EMPHASIS ON USING THE SUPPLY CHAIN TO DELIVER VALUE TO

CUSTOMERS WHO ARE ACTIVELY INVOLVED IN PRODUCT AND SERVICE
SPECIFICATION

D. A SUPPLY CHAIN THAT EMPHASISES DISTRIBUTION OF A PRODUCT TO

PASSIVE CUSTOMERS

ANSWER B

74. THE 'VALUE CHAIN' IDEA IS A CONCEPT THAT HAS BEEN WELL
ESTABLISHED FOR THE PAST THREE DECADES AND IT REFERS TO
CONSIDERING KEY ACTIVITIES THAT AN ORGANIZATION CAN CONDUCT TO
ADD VALUE FOR THE CUSTOMER. IT TRADITIONALLY DISTINGUISHED
BETWEEN PRIMARY ACTIVITIES AND SUPPORT ACTIVITIES. WHY IS THIS
CONCEPT REGARDED AS OUTDATED WITH THE DEVELOPMENT OF E-
BUSINESS.

A. THERE IS A CLEAR DISTINCTION BETWEEN PRIMARY AND SUPPORT

ACTIVITIES

B. THE SUPPORT ACTIVITIES OFFER FAR MORE THAN JUST SUPPORT

C. SUPPORT ACTIVITIES HAVE BEEN SUBSUMED UNDER PRIMARY ACTIVITIES

D. THE CONCEPT STILL HOLDS AND DOES NOT NEED REVISION

ANSWER B

75. A VALUE CHAIN ANALYSIS PROVIDES AN ANALYTICAL FRAMEWORK FOR

AN ORGANISATION TO EXAMINE INDIVIDUAL ACTIVITIES AND DETERMINE
VALUE ADDED AT EACH STAGE. THE PRINCIPLES CAN ALSO BE APPLIED TO
AN ORGANISATION'S EXTERNAL VALUE STREAM ANALYSIS WHICH
CONSIDERS HOW THE WHOLE PRODUCTION AND DELIVERY PROCESS CAN BE
MADE MORE EFFICIENT. THE ACTIVITIES CAN BE CATEGORIZED INTO THOSE:

A. ALL OF THE BELOW

B. THOSE REQUIRED FOR PRODUCT DEVELOPMENT OR PRODUCTION SYSTEMS

C. THOSE THAT DO NOT ADD VALUE

D. THAT CREATE VALUE AS PERCEIVED BY THE CUSTOMER

ANSWER A

76. IMPROVEMENTS IN THE VALUE CHAIN CAN BE IMPLEMENTED BY

FOLLOWING KJELLSDOTTER AND JONSSON'S ITERATIVE PLANNING CYCLE.
WHICH OF THE FOLLOWING DOES NOT FORM PART OF THE CYCLE.

A. CREATING A PRELIMINARY PRODUCTION PLAN

B. CREATING A CONSENSUS FORECAST

C. CREATING A PRELIMINARY DELIVERY PLAN

D. CREATING A QUALITY CONTROL PLAN

ANSWER D

77. WHAT DOES THE FOLLOWING DEFINITION REFER TO: AN ORGANISATION

WHICH USES COMMUNICATIONS TECHNOLOGY TO ALLOW IT TO OPERATE
WITHOUT CLEARLY DEFINE PHYSICAL BOUNDARIES BETWEEN DIFFERENT
FUNCTIONS.

A. BASE-FREE ORGANISATION

B. VIRTUAL ORGANISATION

C. E-ORGANISATION

D. CLOUD ORGANISATION
ANSWER B

78. USING DIGITAL COMMUNICATION TO IMPROVE SUPPLY CHAIN EFFICIENCY

IS DEPENDENT ON EFFECTIVE EXCHANGE AND SHARING OF INFORMATION.
THE CHALLENGES OF ACHIEVING STANDARDIZED DATA FORMATS AND DATA
EXCHANGE HAVE GIVEN RISE TO THE STUDY OF THE OPTIMISATION OF THE:

A. VERTICAL INTEGRATION

B. INFORMATION ASYMMETRY

C. INFORMATION SUPPLY CHAIN

D. VIRTUAL INTEGRATION

ANSWER C

79. THE TYPICAL BENEFITS OF E-SUPPLY CHAIN MANAGEMENT GAINED BY A

B2B COMPANY ARE QUITE COMPREHENSIVE. WHICH OF THE FOLLOWING IS
FALSE THOUGH.

A. INCREASED EFFICIENCY OF INDIVIDUAL PROCESSES

B. INCREASED COSTS THROUGH OUTSOURCING

C. IMPROVED DATA INTEGRATION BETWEEN ELEMENTS OF THE SUPPLY

CHAIN

D. REDUCED COMPLEXITY OF THE SUPPLY CHAIN

ANSWER B

80. WHAT DOES A COMPANY'S INFORMATION SYSTEM NEED TO DELIVER TO

DIFFERENT PARTIES WHO NEED TO ACCESS THE SUPPLY CHAIN
INFORMATION OF AN ORGANISATION, WHETHER THEY BE EMPLOYEES,
SUPPLIERS, LOGISTICS SERVICE PROVIDERS OR CUSTOMERS.

A. PASSWORD AND USER NAME REMINDERS

B. RADIO-FREQUENCY IDENTIFICATION OF PRODUCTS

C. SUPPLY CHAIN VISIBILITY

D. NONE OF THE ABOVE

ANSWER C
81. WHAT WAS THE RATIONALE BEHIND INTRODUCING THE GLOBAL DATA
SYNCHRONISATION NETWORK IN 2005.

A. TO CREATE STANDARDS FOR SHARING INFORMATION ABOUT PRODUCTS

B. TO ALLOW TRADING PARTNERS TO MANAGE EACH OTHER'S SUPPLY CHAIN

C. TO SPEED UP E-COMMERCE INTERACTION

D. TO PROVIDE A COMMON PRICING STRUCTURE TAKING CURRENCY

FLUCTUATIONS INTO ACCOUNT

ANSWER A

82. TO MANAGE E-SUPPLY CHAINS EFFECTIVELY, BENEFITS NEED TO BE

DEVELOPED INTO A PERFORMANCE MANAGEMENT FRAMEWORK.
SAMBASIVAN AND COLLEAGUES (2009) PRODUCED SUCH A FRAMEWORK,
IDENTIFYING CATEGORIES OF MEASURES AND PROVIDED EXAMPLES OF
METRICS FOR EACH. WHICH OF THE FOLLOWING FITS THIS FRAMEWORK.

A. THEY ARE ALL ACCURATE

B. COST IN SUPPLY CHAIN - RETURN ON INVESTMENT

C. PRODUCTION LEVEL METRIC - RANGE OF PRODUCTS AND SERVICES,

EFFECTIVENESS OF SCHEDULING TECHNIQUES, CAPACITY UTILISATION

D. SUPPLY CHAIN FINANCE AND LOGISTICS COST - TOTAL, DISTRIBUTION,

MANUFACTURING, AND INVENTORY COSTS

ANSWER C

83. KEY TO RE-STRUCTURING THE SUPPLY CHAIN IS THE NEED TO EXAMINE

THE TYPES OF RELATIONSHIPS BETWEEN PARTNERS SUCH AS SUPPLIERS AND
DISTRIBUTORS. RESEARCHERS HAVE FOUND THAT LOW COST IS THE MAIN
DRIVER IN MANAGING SUPPLY PARTNERSHIPS AND A RESTRUCTURING WILL
OFTEN REQUIRE COMPANIES TO:

A. FOCUS ON CORE COMPETENCIES

B. DEVELOP STRONG PARTNERSHIP RELATIONSHIPS

C. REDUCE THEIR NUMBER OF SUPPLIERS

D. ALL OF THE ABOVE

ANSWER D
84. AS GUIDANCE TO MANAGING A GLOBAL DISTRIBUTION, SEVEN ACTION
POINTS HAVE BEEN SUGGESTED. DO THESE INCLUDE:

A. LET DISTRIBUTORS PICK YOU

B. TREAT LOCAL DISTRIBUTORS AS SHORT-TERM PARTNERS

C. DO NOT WASTE MONEY, TIME AND ENERGY INITIALLY

D. THEY ARE ALL INCORRECT

ANSWER D